We know experiences now have a big influence on driving footfall to major retail venues, but has the trend gone too far as the sector is now outpacing non-essential spending?

New data from Barclays Consumer Spend show that annual spending on entertainment has risen by 6.5% year on year, beating the growth in non-essential spending more broadly, which is up only 3.4%.

The report even shows that 90% of consumer-facing businesses believe demand for memorable experiences is growing faster than demand for physical products.

The the UK’s ‘Experience Economy’ – encompassing all businesses that provide consumers with unique and memorable experiences, such as holidays, live entertainment, and live sports – contributes an estimated £134 billion to the broader UK economy.

The report shows that UK consumers expect to spend an average of £3,322 on events, experiences and holidays between June and September.

Between now and 2027, it also projects that the UK’s Experience Economy, which employs an estimated three million people, will grow by an average of 2.6%, surpassing the equivalent figure for the UK economy as a whole (1.6%), to reach an estimated contribution of £146 billion.

Meanwhile businesses that have made changes to provide more memorable consumer experiences report a 15% average increase in revenue.

Pride Month, the Paris 2024 Olympics and Glastonbury Festival are the events expected to have the greatest commercial impact.

And of course, we can’t ignore the fact the consumers having experiences often buy products to go with them, whether that’s beach clothing, tour merchandise, occasionwear and more.

Commenting on the findings, Kate Nicholls, Chief Executive at UKHospitality, said: “It’s no surprise that superstars like Taylor Swift and Beyoncé and major sporting events like the Euros bring people out in their droves.”

Dr Peter Brooks, Chief Behavioural Scientist at Barclays, added: “The excitement of buying new furniture, a TV or smartphone tends to disappear relatively quickly as those items get normalised into our everyday lives. However, the memories created from spending on experiences, especially when it’s with family or friends, has been linked to longer-term boosts to happiness as the memories created live on when we reminisce about those shared moments.

“We’re witnessing a long-term behavioural shift that will see experiences like travel and live entertainment take up a greater share of our discretionary spending, certainly this summer but also into the foreseeable future.”